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         UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 15138 / October 29, 1996
SEC v. Frank S. Colin,  (U.S.D.C. N.D. Illinois, Civil Action No.
96C7049)

     The Securities and Exchange Commission (Commission)
announced that on October 28, 1996, a civil injunctive action was
filed in the U.S. District Court for the Northern District of
Illinois against Frank S. Colin of Flossmoor, Illinois.  The
Complaint seeks a Final Judgment and Order of Permanent
Injunction and Other Equitable Relief enjoining Colin from future
violations of Section 17(a) of the Securities Act of 1933,
Section 10(b) of the Securities Exchange Act of 1934 and Rule
10b-5 thereunder.  The Complaint also seeks an order of
disgorgement, plus prejudgment interest, against Colin.

     The Complaint alleges that Colin was a registered
representative associated with David A. Noyes & Co., Inc., a
broker-dealer registered with the Commission and located in
Chicago.  The Complaint also alleges that one of Colin's
customers at Noyes owned a brokerage account containing
approximately $1.6 million in securities and funds.  The
Complaint further alleges that on July 10, 1995, Colin posed as
that customer at a Chicago office of Citicorp Investment
Services, Inc. (Citicorp), a broker-dealer registered with the
Commission, sought to transfer the customer's account from Noyes
to Citicorp, forged the customer's signature on an account
transfer document and on account opening documents at Citicorp,
and provided a Chicago address on the account opening documents,
although the customer resided in Florida.

     The Complaint alleges that, during the period of
approximately July 10, 1995 through August 10, 1995, Colin,
without the consent of the customer, caused the customer's
brokerage account to be transferred from Noyes to Citicorp, sold
all of the customer's securities which were transferred from the
customer's Noyes account to the account at Citicorp, and made
unauthorized purchases of state and municipal bonds in the
customer's brokerage account at Citicorp.  The Complaint also
alleges that Colin misappropriated approximately $835,000 of the
customer's funds from the account at Citicorp for various
personal uses, including, but not limited to, purchases of gold
coins, repayments of credit card debts and personal loans,
repayment of a residential mortgage, real estate rentals, and
purchases of computer equipment.  The Complaint further alleges
that, as a part of his fraudulent trading scheme, Colin made
untrue statements of material facts and omitted to state material
facts to the customer, Citicorp and Noyes concerning the transfer
of the customer's account from Noyes to Citicorp, his sales of
the customer's securities, his purchases of bonds in the
customer's account at Citicorp and his personal uses of the
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customer's funds.